Advertisements
Advertisements
Question
Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:
| Date | ₹ |
| February 1 | 2,000 |
| May 1 | 10,000 |
| July 1 | 4,000 |
| October 1 | 6,000 |
Calculate the amount of interest on drawings.
Solution
Interest on Drawings = Amount × Rate of Interest × Period
Feb 1 = `2,000 xx 6/100 xx 11/12` = ₹ 110
May 1 = `10,000 xx 6/100 xx 8/12` = ₹ 400
July 1 = `4,000 xx 6/100 xx 6/12` = ₹ 120
Oct 1 = `6,000 xx 6/100 xx 3/12` = ₹ 90
Interest on Drawings = 110 + 400 + 120 + 90 = ₹ 720
APPEARS IN
RELATED QUESTIONS
Which of the following is the incorrect pair?
Pick the odd one out
The capital account of Begum and Fatima on 1st January, 2018 showed a balance of ₹ 50,000 and ₹ 40,000 respectively. On 1st October, 2018, Begum introduced an additional capital of ₹ 10,000 and on 1st May, 2018 Fatima introduced an additional capital of ₹ 9,000.
Calculate interest on capital at 4% p.a. for the year ending 31st December, 2018.
Mani is a partner, who withdrew ₹ 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.
Kumar is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:
| Date | ₹ |
| March 1 | 4,000 |
| June 1 | 4,000 |
| September 1 | 4,000 |
| December 1 | 4,000 |
Calculate the amount of interest on drawings.
Mathew is a partner who withdrew ₹ 20,000 during the year 2018. Interest on drawings is charged at 10% per annum. Calculate interest on drawings on 31st December 2018.
Ram and Shyam were partners. Ram withdrew ₹ 18,000 at the beginning of each half year. Interest on drawings is chargeable @ 10% p.a. Calculate interest on the drawings for the year ending 31st December 2018 using the average period.
Mani is a partner, who withdrew ₹ 30,000 on 1st September 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December 2018 and show the journal entries by assuming that fluctuating capital method is followed.
Mani is a partner who withdrew ₹ 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that the fluctuating capital method is followed.
Mani is a partner, who withdrew ₹ 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.
